GeoPetro Resources Company (GPR) Updates Status of Alaska Project

By IBT Staff Reporter On 07/30/10 AT 7:34 AM

GeoPetro Resources Company (GPR) issued a status report on the Alaska Cook Inlet Project, the company’s oil and gas development project located in Alaska.

GeoPetro Resources Company has exercised its contractual right to convey to Linc Energy, the company’s partner in the Alaska Cook Inlet Project, a 100% interest in 122,000 acres of leases at the project.

GeoPetro Resources Company will receive $1 million cash upon closing, followed by 75% of the proceeds of the sale of oil and gas from the leases, up to a maximum of $4 million. After the payout to GeoPetro Resources Company reaches $5 million total, the company will receive a 10% royalty payment from future oil and gas production.

GeoPetro Resources Company reported that the assignment of the leases received approval from the Alaska Department of Natural Resources and the Trust Land Office.

GeoPetro Resources Company said that Linc Energy is proceeding toward drilling the first well at the Alaska Cook Inlet Project. The LEA 31 will be drilled vertically and target the Middle and Lower Tyonek Formations. The management of GeoPetro Resources Company was confident about the resource potential of the Alaska Cook Inlet Project.

“The spudding of the first well in the Cook Inlet Region is a significant milestone for the Company. Given the potential for approximately one trillion cubic feet of natural gas, this is an exciting time for us and may represent a transformational event for the Company,” said Stuart J. Dosh, the CEO of GeoPetro Resources Company.